Dear Client

The submission period for the 2024 annual employer reconciliation declaration is upon us. As your trusted tax professional, we will ensure that you have a seamless and successful filing experience.

For this reconciliation period (annual EMP501) employers are required to submit accurate declarations for the twelve months from 1 March 2023 to 29 February 2024.

ANNUAL EMP501 SUBMISSION DATE

• Submission due date: 31 May 2024
• Any late or non-submissions will result in penalties and interest being charged

ANNUAL EMP501 SUBMISSIONS MUST RECONCILE

Employers are required to submit an EMP501 which reconciles employees’ tax (PAYE), skills development levy (SDL), unemployment insurance fund (UIF) and employment tax incentive (ETI) to:

• Monthly Employer Declarations (EMP201s) submitted to SARS
• Payments made to SARS
• Total value of employees’ tax certificates for the period, i.e. IRP5s/IT3(a)s

Should the above not balance, or reconcile, SARS will alert the employer.

ONLINE SUBMISSIONS

Employers can use either:

• e@syFile™ Employer
• eFiling (if 50 IRP5s/IT3(a)s or less)
• Manual submissions have largely been discontinued, with SARS only accepting this formatted in exceptional circumstances

It is important ensure that the EMP501 submission has in fact been successfully filed with SARS, this can be done by monitoring the status of the submission. Should the submission be rejected due to it being incomplete or having incorrect data, SARS considers it not to have been submitted leaving the employer non-compliant and liable for penalties.

Non-compliant status has an immediate impact on an employer’s ability to claim monthly ETIs.

As any post-reconciliation adjustments may attract further SARS enquiries as well as penalties and interest, we recommend that you undertake a PAYE review, whether detailed or high-level, in order to have certainty as to your level of payroll compliance before submitting your declaration.

We can assist you with a tailor-made PAYE review solution that will benefit you and your company. 

For more information and assistance, please contact: